Clean Energy Fuels Corporation Q2 2009 Earnings Call Transcript

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2009-08-10 18:12:15.0

Tags: Vehicle, Call Transcript, Earnings, Team Management, Sales Force Management, Sales Tools, Sales Strategy, Management, Sales, Seeking Alpha, Clean Energy Fuels Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Robert Brown – Craig-Hallum.

Robert Brown – Craig-Hallum

Maybe you could provide a little more color on the national trucking initiative, sort of what that involves and how long the sales cycle might be before you start to see contracts.

Andrew Littlefair

Many of those customers right now, and I'm not going to read them all off to you because I don't think that's probably wise for me to do, but they're very familiar names. Several of them are already testing vehicles, but we know talking and working with these guys that really in order to get them with the appropriate level of confidence and experience, they need to be testing more vehicles.

So we work closely with Westport to come up with a package of incentives that we think will be really frankly attractive for these guys to take 20 or 30 units each into these fleets. Our team has met with them. Our combined team has met with, I don't know if they've met with all 20 yet, but they've met with the vast majority of them.

We've had a very nice reception. So now the devil is in the details of getting contracts. We'll have the first one of those announced I hope here shortly. It looks like it's already done. And so I have high hopes for this.

I would imagine though you're going to see that over the course of the next 30 to 60 days and then those vehicles will be put into service a month or two after that. So it's something that's in the later part of this year.

The timing is good though because all of these trucking companies are now looking at the NAT Gas Act. We know from talking with that that gets the incremental down to where it's very attractive, so it's time to get these things in place and I think this is a good way to go about it.

It's kind of what we did in the refuse market. We started out with getting anybody that would do it. We'd get them five or seven refuse trucks. But it wasn't until we got 15 or 20, 30 in a given fleet that they really got the confidence that they have now, and so that's what we need to do with these big sophisticated operators.

Robert Brown – Craig-Hallum

 

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